tv [untitled] February 16, 2013 10:00pm-10:30pm PST
we can work with staff and some of our political leaders and we can argue to get our fair share of federal fund and the trade in china we learned is exceeding the united states so the west coast ports are going to be more and more important. we've got to carry the message to our political leaders >> so i did take notes on the items you asked for commissioner. do we have any new business >> any new business or public
comments. francisco i know you listed yourself for other comments >> the reason i came here for public comments and because of my past history i have to comment. so one of the things missing in this presentation and or issues. some of the toongz have been removed. you should revisit to find out what that can do. and on port proprieties when had pollution in our base and we have to understand those things.
we can talk about pier, however, we want to. we know there are some ammonia places. we have to look at it in this way we know that one time for over 10 thousand years the people kept this area press tin and somebody came in over here and polluted this area. we need to pay attention to environmental issues. so our children and our youth, our elders have to get the best. now i focus on the south sector where we have a number of issues. and we had a number of these
issues because of our power plant of the place in the south in that area that impacted our situation. but their problem is that they were inversely impacted so we have to reach out and allow them to have a voice not just in those districts their focused on - we need to focus on our real issues by enclosing to city hall and participating in forums and debates. we villaraigosa to have robust debates. by you have to have it from time
to time so that this area our front like that is factored in and environmentally what happened when we have 40 or 50 feet of water in the subways that's good impact. so i don't mean to be very blunt or direct in a way to hurt somebody's feelings but we need because of these food maintenance we need to think outside the box to do something right. >> thank you anybody else for a public comment? may i have a motion to adjourn? a second? >> i. >> i.
1951, 60 years ago, our first kids began to play in the chinese wrecks center -- rec center. >> i was 10 years old at the time. i spent just about my whole life here. >> i came here to learn dancing. by we came -- >> we had a good time. made a lot of friends here. crisises part of the 2008 clean neighborhood park fund, and this is so important to our families. for many people who live in chinatown, this is their backyard. this is where many people come to congregate, and we are so happy to be able to deliver this project on time and under budget. >> a reason we all agreed to name this memorex center is because it is part of the
history of i hear -- to name this rec center, is because it is part of the history of san francisco. >> they took off from logan airport, and the call of duty was to alert american airlines that her plane was hijacked, and she stayed on the phone prior to the crash into the no. 9 world trade center. >> i would like to claim today the center and the naming of it. [applause] >> kmer i actually challenged me to a little bit of a ping pong -- the mayor actually challenge me to a little bit of a ping- pong, so i accept your challenge. ♪
>> it is an amazing spot. it is a state of the art center. >> is beautiful. quarkrights i would like to come here and join them >> good morning, everyone, and welcome to the san francisco board of supervisors budget and finance committee meeting for wednesday, february 13th, 2013. my name is supervisor mark farrell, i am the chair of this committee. we are joined by supervisor eric mar, vice-chair, and supervisor john avalos. i would like to thank the sfgtv members covering this meeting, marks bunch and michael freeman, and the clerk of the board mr. victor young. mr. clerk, do we have any
announcements? >> yes. please turnoff all phones and electronic devices. completed speaker cards and copies of any documents to be included as part of the file should be submitted to the clerk. items acted upon today will appear on the february 26th, 2013 board of supervisors agenda unless otherwise stated. >> thank you very much, mr. clerk. we are going to call two items out of order. first items number 4 and 5, mr. eries kin has other commitments elsewhere. so, thank you for being here. can we please call item number 4, first? >> item number 4, resolution approving a lease agreement between the city and county of san francisco and the city of san francisco japan center garage corporation for the japan center public parking garage, for an annual base rent of $1 plus surplus, with an initial term of 10 years with two 5-year options. item number 5, resolution approving a lease agreement between the city and county of san francisco and the city of san francisco uptown parking corporation for the sutter stockton public parking garage, for an annual base rent of $1 plus surplus, with an initial term of 10 years with two five-year options. >> thank you very much.
mr. reiskin, thank you for being here. >> thank you, mr. chair. members. thank you for accommodating the agenda adjustment. so, before you are two proposed leases with two different nonprofit corporations for two different garages that the sfmta manages. so, a little context here. we manage about 20 parking garages across the city. a number of them had nonprofits established in the 1950s and 1960s to manage the garages on behalf of the city. the main purpose of these nonprofits when they were established were to issue debt in order to facilitate capital improvements and expansions in these garages. over the course of the intervening 50 or 60 years, some of these nonprofit entities that have been managing the garages during that time, the role has really
expanded into providing neighborhood-specific expertise and perspective, what they bring to bear on the management of the garages on behalf of the city, now the mta. they're typically populating the boards of these corporations or typically populated by merchants and other key neighborhood stakeholders that have an understanding of the specific neighborhood issues that are relevant to their specific garage and bring with them an understanding of the impact that the garages have to the neighborhood, very kind of localized issues. so, in 2008 when the voters approved proposition a, they gave the mta the authority to issue its own debt, which we have subsequently done. and what we did in the process or as part of doing that was we issued debt to refund all the outstanding garage debt. so, we've taken those corporations out of the role of being debt issuers for those
garages. we have now assumed that role. so, that purpose of the corporations no longer exist. the subsequent purpose that has developed still remains. so, where we are today, in order to both issue the debt and also for us to issue the debt to refinance the garage debt, and also as a result of a number of recommendations that came from a controller's audit that was performed in 2011, we restructured all the leases. we developed a standard lease form that incorporates many of the recommendations from the controller's office and also other things that we needed to have in place in order to issue the debtorthat we wanted to have in place in order to issue the debt. so, we've been working through the different garages to get the new lease terms in place. you recently approved two leases for -- one for the [speaker not understood] garage and one for the 5th and mission garage.
in some of these cases the existing nonprofit entities have decided to change their role and shift to a more advisory structure and that's what happened with ellis o'farrell at 5th and mission. in other cases such as the two that are before you today, the nonprofit has wished to remain in place and continue serving the function that i referenced. so, what we have before you are those two leases. they were here under the previous budget and finance committee about a month ago. they were continued to give us an opportunity or to request from us additional information and context which we have since provided, both in the form of a letter and in briefings to you or endeavored to provide. so, it's the same proposed leases that were before you. i believe there are representatives from both of the corporations here available to answer any questions of them. also have mta garage and finance staff to answer any specific questions about the
leases themselves. they're largely a similar form as the ones we previously approved with the difference being that these two retain the nonprofit corporations in place. so, that's kind of an update from where we were a month ago. again, we have our technical people as well as the corporation people here to answer any questions that you might have. >> thank you, mr. reiskin. colleagues, first, any questions from you guys? okay. just in context, i understand the principle here and certainly have heard from a lot of the members of the japantown community about the value of having this involvement. the question is obviously, it seems like there is just a middleman here in place. valuable to the community, but we're paying them, what, $276,000 a year for a corporate manager and 125 grand -- 126 for corporate manager, 125 for accounting.
should we just be having them as an advisory board as well? and couldn't they perform the same duties? why are we siphoning off money to them when the mta could be doing this? >> well, so, there's no question the mta could perform the technical functions of operating the garages. we do that in many other places around town. in terms of the value that they bring and the direct management, they are much closer to the kind of pulse of the neighborhoods and the needs of the neighborhoods. again, a lot of these are merchants in the neighborhoods whose business is related to or dependent on the operation of the garage. so, they're a level closer to the ground than we would be managing from 1 south van ness. how exactly to value, you know, the worth of that, frankly it's difficult to do, but it's a function they've been serving for more than 50 years. they've got deep roots into the community. they have a deep understanding of the garage operations and
its functioning relative to the surrounding community. so, we felt, and as we've brought this through the m toshibation a board, that was a value worth retaining if they were interested in doing so. * mta >> but i guess in terms of -- i hear you and it makes a lot of sense. i've been going to japantown my whole life. [speaker not understood] it was a lot more fun, i thought. but paying them a few hundred thousand dollars a year for a manager and accounting staff, if you will as a middle person, i mean, i assume they could just do this -- be board members involved in the community without having to pay a general manager, if you will. >> it is possible that they could do that as well. they would obviously have less of a direct role in the day to day serving just as an advisory capacity than as the direct manager and we would step in and fill that latter role if that were to be the case, which is what we're doing with some of the other garages. >> all right. supervisor mar.
>> i just wanted to thank mr. reiskin for the recommendations, and also the controller and the budget analyst for their recommendations, too. i think one of the historical contexts of japantown is the history of the interment camps and redevelopment of '50s and '60s many in the communities -- and we've received letters from steve, sandy and many others that there is a sense that the community was devastated, that in many ways to have a community based nonprofit run the garage, building the community relations and maintaining an ethnic heritage and community is really, really important for japantown. and i support that. and i think the relations, whether it's with the cherry blossom festivals or the [speaker not understood] street fair, and there is actually a day of remembrance program coming up this coming sunday. but there are so many different community-based events and to have a nonprofit run the garage is really important in building that relation. especially as the whole
japantown area is still being considered for different developments and other things. so, i think it's an important expenditure of money that builds better community relations and i think this nonprofit has done a great job doing it and i'm glad that the mta is supportive of that. >> okay. thank you, mr. reiskin. so, the budget and legislative analyst. >> mr. chair, members of the committee, we consider approval of this legislation to be a policy matter for the board. we have previously testified on this and we would be happy to respond to any questions. >> colleagues, any questions? okay. seeing none, at this point i'd like to open up to public comment. if there are any members of the public that wish to comment on item number 4, please step forward. if there's more than ms. chang, please feel free to line up. * against the wall there and every speaker will have two minutes. good morning.
claudine chang, legal counsel for the japantown garage corporation. i'm glad chairman farrell brought up the question of paying a middleman [speaker not understood]. actually this lease is not about $1. why we pay $1 and what are we getting back? if i were in your shoes i'd ask exactly the same question it is a very valid question. i want to bring up a point. when garage lease was first approved in 1988, [speaker not understood] realized unique economic benefits by entering into this lease. again, director's message to the committee, he talked about oversight and community relations. and [speaker not understood] benefits. i would like to bring to your attention these benefits are not just intangible. they are pretty quantifiable because over the last few many years, the japan center garage contributed to the city's transportation fund of over $1.1 million every year to the
city's transportation fund. and on top of that, the japantown, according to [speaker not understood] office, had an increase of 70.7 percentage on sales tax relative to the city's average of 4.2%. these are real dollars contributed to the city and these dollars are benefit apparently have fallen onto the merchants and therefore, you know, at the benefits are not intangible. we are talking about tangible benefits. these are exactly the purposes of -- this is exactly the purpose of why the nonprofits were brought into being in the first place. they have been doing exactly just that. so, i'd like to ask you to approve this lease on the basis of these tangible benefits and the fact that the corporation keeps its purpose since 1988. thank you. >> thank you. next speaker, please. hi, my name is [speaker not understood]. i'm chair of the board of the [speaker not understood] garage. although the current lease will run through 2017 with an option
to renew additional 15 years, our board approved the new lease in order to participate in a capital improvement program. we applaud the mta for years of long-term planning that result in the issuing of capital improvement bond in july of last year. and japan center garage looks forward to the opportunity to address some long overdue capital improvements. another key reason why the board approved the new lease is to continue the current management of the garage by the nonprofit organization. the board appreciates, it's a working relationship with the mta staff and the opportunity to give input to policy and programs affecting the garage. if the board is replaced by the advisory committee, the level of input will be advisory only
and it's not the same. thank you. >> thank you very much. next speaker, please. hello, my name is emilie [speaker not understood], i own the [speaker not understood] restaurant in san francisco and i'm a board director on the japantown garage corporation board and i've been so for four years. two quick points i wanted to make. one is that my restaurant and my business are at an interesting intersection of jazz district, fillmore street, and japantown. and i really see the value that with you come together with making decisions as merchants for the neighborhood and connecting people between these three neighborhoods which are all very unique and very special to the city. and i have been amazed in the past four years at how much we actually accomplished making decisions, not just giving advice [speaker not understood], operating a garage and how much it benefits the community. so, the continuance of that i think has real monetary value
and we definitely see how we impact commerce by coming together in this way and building the amount of visitation and things happening between these three neighborhoods. the other thing i just wanted to say is that as a volunteer, you know, i'm there spending my time simply because, you know, we make decisions because we're in the community that benefit us and benefits the people. you can't really replace that with a group that's outside of the neighborhood. so, thank you for considering this. >> thank you very much. next speaker, please. good morning, supervisors. my name is mineta white, i'm on [speaker not understood], i also sit on the board of the japantown parking garage. parking is a critical issue to neighborhood businesses throughout the city. being the owner of a restaurant on a busy corridor on fillmore street, i know firsthand how the garage successful management has a positive